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Newsweek
22-07-2025
- Business
- Newsweek
Should Donald Trump Fire Jerome Powell? Wilbur Ross Weighs In
Based on facts, either observed and verified firsthand by the reporter, or reported and verified from knowledgeable sources. Former Commerce Secretary Wilbur Ross believes that President Donald Trump attempting to unseat Federal Reserve Chair Jerome Powell would result in a lengthy legal battle and few benefits for the president. In an interview with Newsweek last week, Ross said he does not think Trump intends to fire Powell. Asked whether Trump should, Ross responded: "I don't think it's a question of should." "Powell's term expires mid-year next year. So he's not going to be in for very long in any event," he said. "And if Trump went to fire him, no doubt it would end up in court, and to get a decision like that, which undoubtedly would end up in the Supreme Court, to try to bring that to a decision in less than a year is very unlikely." "So I'm not so sure that even if he wanted to do it. And even if he were able to ultimately convince the court that he has the power to do it, I'm not sure he'd save very much time." Why It Matters Talk of Powell's resignation, or the president firing him before his term ends in May 2026, stems from a dispute over the Federal Reserve's reluctance to cut interest rates from the current target range of 4.25–4.50 percent. Since the beginning of his second term, Trump and certain members of his cabinet have called for sizable rate cuts to stimulate economic growth and reduce the interest the United States pays on its debt. However, the central bank has repeatedly stated that it will remain in "wait-and-see" mode until there is greater clarity on the trajectory of inflation and until the full impact of Trump's tariffs on the U.S. economy is understood. Firing Powell from his Senate-confirmed post would mark a significant departure from the Fed's historically recognized independence, and it would likely raise questions about the stability of the U.S. economy. L: Former Commerce Secretary Wilbur Ross speaks at the Concordia Annual Summit on September 23, 2024. R: Federal Reserve Chair Jerome Powell at a news conference in Washington, D.C., on May 7, 2025. L: Former Commerce Secretary Wilbur Ross speaks at the Concordia Annual Summit on September 23, 2024. R: Federal Reserve Chair Jerome Powell at a news conference in Washington, D.C., on May 7, 2025. John Lamparski /for Concordia Summit / Getty Images What To Know Trump has taken to calling Powell, who chairs both the Fed's Board of Governors and its Open Market Committee, "too late Powell" over his decision to hold rates steady at successive monetary policy meetings, while also dubbing him a "stupid person" and "Trump Hater." However, the president's messaging on whether he intends to oust Powell has been mixed. Speaking to reporters in the Oval Office last week, Trump said that lowering interest rates by three percentage points would save the government $1 trillion in debt payments, and that he had spoken with Republican members of Congress about the possibility of firing the Fed chair. "Almost every one of them said I should, but I'm more conservative than they are," Trump said. "I don't rule out anything," he added, "but I think it's highly unlikely." According to Section 10 of the Federal Reserve Act, the president can remove any member of the Fed's Board of Governors "for cause," which is widely interpreted to mean serious misconduct or malfeasance in office. However, past Supreme Court cases have determined that this cannot be done for simple policy disagreements, i.e., over whether and when to adjust interest rates. Last week, Trump suggested that Powell could be forced to resign "for fraud," pointing to the recent $2.5 billion renovation of the Fed's Washington, D.C. headquarters. In a recent letter to Powell, Russ Vought, director of the Office of Management and Budget (OMB), called the renovations an "ostentatious overhaul," and said that statements made by Powell during his testimony before the Senate Banking Committee in June raised "serious questions" about the project's compliance with the federal guidelines. In his response, Powell said: "We have taken great care to ensure the project is carefully overseen since it was first approved by the Board in 2017." As well as the oversight it has already been subject to, Powell said he had asked the Federal Reserve's independent Inspector General "to conduct a fresh review of the project." Even if the allegations of fraud were substantiated and the Trump administration made formal attempts to remove him from his post, Powell would be able to contest this decision. As Ross told Newsweek, Powell's tenure could end before the case was fully resolved in the form of a Supreme Court ruling. However, in the case of a preliminary injunction, Vice Chair Philip Jefferson would assume Powell's duties during the dispute. During a press conference shortly following the presidential election, Powell said that it was "not permitted under law" for the president to demote or fire governors or those holding leadership positions within the Fed. When asked whether, if asked by Trump, he would resign from his post, Powell responded bluntly: "No." What People Are Saying President Donald Trump, speaking to reporters about Powell last week: "Fortunately, we get to make a change in the next, what, eight months or so, and we'll pick somebody that's good and we'll pick somebody. I just want a fair job. We want to see lower interest rates. Our country deserves it. We're making a lot of money. We're doing great as a country." Commerce Secretary Scott Bessent told Fox Business this week: "I know Chair Powell. There's nothing that tells me that he should step down right now. He's been a good public servant. His term ends in May. If he wants to see that through, I think he should. If he wants to leave early, I think he should." Federal Reserve Chair Jerome Powell, at a European Central Bank forum in Portugal on July: "I'm very focused on just doing my job. I mean, there are things that matter—using our tools to achieve the goals that Congress has given us: maximum employment, price stability, financial stability. And that's what we focus on 100 percent." What Happens Next In an interview with Bloomberg Television this week, Bessent said a "formal process" for identifying Powell's successor had begun. "It's President Trump's decision, and it will move at his speed," he added. Economists who previously spoke to Newsweek said they anticipate the Fed cutting rates by the end of the year at the latest. These cuts, they said, could range from one 25-basis-point cut to several of this size.
Newsweek
23-06-2025
- Politics
- Newsweek
Veterans in Congress Issue War Powers Warning to Trump After Iran Strike
Based on facts, either observed and verified firsthand by the reporter, or reported and verified from knowledgeable sources. Newsweek AI is in beta. Translations may contain inaccuracies—please refer to the original content. A dozen Democratic representatives in Congress, all military veterans, have sent a letter to the White House ordering that lawmakers will vote on any additional aggression against Iran so as not to repeat the "same mistakes" from wars that started two decades ago. Why It Matters Trump's green light to what he later described as a "very successful attack" against Iran's nuclear sites at Fordow, Natanz and Isfahan has drawn renewed attention to Congress's role in approving military action as part of a potential broader war. Democratic Senator Tim Kaine's War Powers Resolution pending in the Senate has been mirrored in the U.S. House of Representatives, where Republican Representatives Thomas Massie of Kentucky and Ro Khanna of California introduced a resolution last Tuesday. The War Powers Resolution of 1973 was enacted to limit the president's ability to commit U.S. armed forces to hostilities abroad without Congressional consent. What To Know A letter published on Monday was led by Representative Pat Ryan of New York, a U.S. Army veteran, and co-signed by 11 fellow House Democrats, who described themselves as "patriots who love our country." The other legislators are as follows: Rep. Salud Carbajal (CA) – Marine Corps Reserve Rep. Gil Cisneros (CA) – Navy Rep. Herb Conaway (NJ) – Air Force Rep. Chris Deluzio (PA) - Navy Rep. Maggie Goodlander (NH) – Navy Reserve Rep. Chrissy Houlahan (PA) – Air Force Rep. Ted Lieu (CA) – Air Force Rep. Jimmy Panetta (CA) – Navy Reserve Rep. Bobby Scott (VA) – Army Rep. Derek Tran (CA) – Army Rep. Eugene Vindman (VA) – Army Newsweek reached out to Ryan and others for comment. The lawmakers and veterans of multiple U.S. military branches are imploring the Trump administration not to jump into a conflict with Iran and other nations, saying that wars in Iraq and Afghanistan, which were fought by many of the signees, have led to no accountability, years after trillions of dollars and countless deaths. "Twenty years ago, in their rush to appear strong and tough, politicians—from both parties—failed to ask the hard questions before starting wars in Iraq and Afghanistan," the letter reads. "They failed us, our fellow veterans, and the American people. "Now, trillions of dollars and countless deaths later, we still haven't gotten accountability. We refuse to make those same mistakes." Rep. Pat Ryan speaks at the Concordia Annual Summit in New York City on September 18, 2023. Rep. Pat Ryan speaks at the Concordia Annual Summit in New York City on September 18, Concordia Summit The letter also says that the dozen lawmakers "are under no illusions about the nature of the Iranian regime and its proxies," referring to them as "evil" and intent to destroy both the U.S. and Israel. "Many of us lost friends to Iranian-backed terror," the letter continues. "We must continue to stand strongly with our Israeli allies, including active and robust support for the defense of the state of Israel and its people, as we have for decades. "But we must be very clear: American-led, offensive military operations against Iran—including Saturday night's preventive air strikes—are different." Representative Salud Carbajal told Newsweek on Monday: "As a Marine veteran, I served my country with pride but also understand the human cost of war. That cost is why our Founding Fathers gave Congress the power to declare war—to ensure that our nation has a transparent and honest conversation before we send Americans into harm's way. "That's why I joined my fellow House Democratic veterans in reaffirming this essential constitutional duty. We owe it to our servicemembers, their families, and the American people to prevent a rushed and reckless entry into war." A spokesperson for Goodlander shared the following statement with Newsweek: "Under the United States Constitution, Congress plays a critical role in questions of war and peace. I'll never stop working to ensure we execute our constitutional responsibility, protect the 40,000 U.S. forces serving in the Middle East today, and keep the American people safe." Patricia Crouse, a political scientist in residence at the University of New Haven, told Newsweek on Monday that she believes the current push to update the War Powers Act is a direct response to the situation in the Middle East. But it's a legislative effort that gained traction during the first and second Gulf Wars, she said. "As in the past, though, I don't believe it will gain much traction," Crouse said. "Other than Massie and MTG (Representative Marjorie Taylor Greene), Republicans in the House are fully behind Trump's actions and seem in no rush to limit his powers. The situation in the Senate is similar. "Without support from Republicans in both chambers, anything Democrats attempt to do is purely symbolic." Kaine told Punchbowl News on Monday that he is privy to Senate GOP support of his resolution, saying that lawmakers have expressed interest in signing off on whether Congress, not just the president, should have a say in attacking other nations. "I know I will have Republican support. How much is unclear," Kaine said. "The day-to-day events will affect is a very evolving situation." What People Are Saying Represenative Pat Ryan, in a statement on Monday: "I am supporting a War Powers Resolution because it is the clear and sacred Constitutional duty for Congress, not the President, to declare war. As our Founders intended, this will ensure we have a full and honest conversation with the American people about what American military action against Iran would mean. We stand ready and willing to execute our Constitutional responsibility, to protect our troops, and to keep the American people safe." Representative Ted Lieu, in a statement on Sunday: "There will be a bipartisan, classified briefing by the Administration this Tuesday. I urge the Administration to address what congressional authorization it relied on for the military strikes, if any. I also want the Administration to address many unanswered questions, such as if the strikes achieved their intended objectives, how the Administration intends to protect Americans and our service members from potential future attacks, and what the Administration's plan is going forward." What Happens Next Democratic Representatives Gregory Meeks of New York, Adam Smith of Washington, and Jim Himes of Connecticut—ranking members of the Foreign Affairs, Armed Services and Intelligence committees, respectively—are drafting their own War Powers resolution, according to Punchbowl News.
